[Federal Register Volume 63, Number 16 (Monday, January 26, 1998)]
[Rules and Regulations]
[Pages 3652-3653]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-1753]
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NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Part 1842
Miscellaneous Revisions to the NASA FAR Supplement Coverage on
Contract Administration
AGENCY: National Aeronautics and Space Administration (NASA).
ACTION: Final rule.
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SUMMARY: This is a final rule amending the NASA FAR Supplement (NFS)
contract administration policy to update references to OMB Circulars
and NASA internal guidance documents and to provide revised guidance on
audit followup procedures.
EFFECTIVE DATE: January 26, 1998.
FOR FURTHER INFORMATION CONTACT:
Jack Horvath, NASA, Office of Procurement, Analysis Division (Code HC),
(202) 358-0456.
SUPPLEMENTARY INFORMATION:
Background
NFS sections 1842.101 and 1842.7301 reference OMB Circulars A-88
and A-128. Both of these have been cancelled and replaced by OMB
Circular A-133, and the NFS references are updated accordingly. Section
1842.102-70(b) provides guidance for NASA Centers on advising NASA
Headquarters of changes in contract administration activity. This
section is further clarified to indicate that NASA Center reports to
Headquarters are required semiannually. Finally, changes are made to
section 1842.7301 to include references to new NASA guidance documents
and to clarify audit followup activities.
Impact
NASA certifies that this regulation will not have a significant
economic impact on a substantial number of small business entities
under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.). This final
rule does not impose any reporting or recordkeeping requirements
subject to the Paperwork Reduction Act.
List of Subjects in 48 CFR Part 1842
Government procurement.
Tom Luedtke,
Deputy Associate Administrator for Procurement.
Accordingly, 48 CFR part 1842 is amended as follows:
1. The authority citation for 48 CFR part 1842 continues to read as
follows:
Authority: 42 U.S.C. 2473(c)(1).
PART 1842--CONTRACT ADMINISTRATION
1842.101 [Amended]
2. In paragraph (a)(i) to section 1842.101, the phrase ``OMB
Circular No. 88'' is revised to read ``OMB Circular No. A-133''.
3. In paragraph (a)(ii) to section 1842.101, ``(Code HS)'' is
revised to read ``(Code HK)''.
1842.102-70 [Amended]
4. In section 1842.102-70, paragraph (b) introductory text is
revised to read as follows:
1842.102-70 Review of administration and audit services.
* * * * *
(b) A summary, including a negative summary, of the Center's
assessment shall be submitted by the procurement officer to the
Headquarters Office of Procurement (Code HK) by not later than January
15 and June 15 of the fiscal year. The summary shall include--
* * * * *
1842.7301 [Amended]
5. Section 1842.7301 is revised to read as follows:
1842.7301 NASA external audit follow-up system.
(a) This section implements OMB Circular No. A-50, NASA Policy
Directive (NPD) 1200.1, and NASA Procedures and Guidelines (NPG)
1200.1, ``Management Accountability and Control, Audit Liaison, and
Audit Follow-up'', which provide more detailed guidance.
Recommendations for external audits (OMB Circular No. A-133, Audits of
States, Local Governments, and Non-Profit Institutions) shall be
resolved by formal review and approval procedures analogous to those at
1815.406-171.
(b) The external audit followup system tracks up contract and OMB
Circular No. A-133 audits where NASA has resolution and disposition
authority. The objective of the tracking system is to ensure that audit
recommendations are resolved as expeditiously as possible, but at a
[[Page 3653]]
maximum, within 6 months of the date of the audit report.
(c)(1) The identification and tracking of contract audit reports
under NASA cognizance are accomplished in cooperation with the DCAA.
(2) Identification and tracking of OMB Circular No. A-133 audit
reports are accomplished in cooperation with the NASA Office of the
Inspector General (OIG) by means of a transmittal memorandum. A
transmittal memorandum is sent by the OIG to the procurement officer of
each NASA Center having an award (contract, grant, or other agreement)
covered by the audit report. The transmittal memorandum will identify
any significant audit findings.
(d)(1) All reportable contract audit reports are defined by Part
15, Section 6, of the DCAA Contract Audit Manual (CAM) shall be
reported quarterly to the Headquarters Office of Procurement (Code HC);
and
(2) Only OMB Circular No. A-133 audit reports involving the
following shall be reported quarterly to Code HC:
(i) A significant management control issue; or
(ii) Questioned costs of $10,000 or more due to an audit finding
(see Subpart E-Auditor, paragraph 510 of OMB Circular No. A-133).
(3) NASA contracting officers will maintain a dialogue with DOD
Administrative Contracting Officers (ACO) who have been delegated
activities on NASA contracts. A review will be conducted no less
frequently than semiannually, and the status and disposition of
significant audit findings will be documented in the contract file.
(e)(1) The terms ``resolution'' and ``disposition'' are defined in
Appendix A of NPG 1200.1.
(2) The resolution and disposition of OMB Circular No. A-133 audits
are handled as follows:
(i) Audit findings pertaining to an individual NASA award are the
responsibility of the procurement officer administering that award.
(ii) Audit findings having a Governmentwide impact are the
responsibility of the cognizant Federal agency responsible for
oversight. For organizations subject to OMB Circular No. A-133, there
is either a cognizant agency or an oversight agency. The cognizant
agency is the Federal agency that provides the predominant amount of
direct funding to the recipient organization unless OMB makes a
specific cognizant agency for audit assignment. To provide for the
continuity of cognizance, the determination of the predominant amount
of direct funding will be based on the direct Federal awards expended
in the recipient's fiscal years ending in 1995, 2000, 2005, and every
fifth year thereafter. When there is no direct funding, the Federal
agency with the predominant indirect funding is to assume the oversight
responsibilities. In cases where NASA is the cognizant or oversight
Federal agency, audit resolution and disposition is the responsibility
of the procurement officer for the Center having the largest amount of
direct funding, or, if there is no direct funding, the largest amount
of indirect funding for the audited period. A copy of the memorandum
dispositioning the findings shall be provided by each Center having
resolution responsibility for the particular report to the Headquarters
OIG office and Code HC.
[FR Doc. 98-1753 Filed 1-23-98; 8:45 am]
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